Dow Jones and Nasdaq 100: Markets Drops as Powell Testifies, Coca-Cola Jumps three%…

In the meantime, megacap tech shares have been underneath strain. Apple and Amazon declined zero.6% and zero.7%, respectively, as traders rotated out of progress names. AI-linked shares, which had pushed Monday’s market rebound, additionally confirmed indicators of profit-taking.

Yields and Inflation Knowledge Might Shift Fed Expectations

The bond market is adjusting its outlook, with merchants pricing within the danger of extended increased yields. The 10-year Treasury yield stays elevated, reflecting issues that tariff-driven inflation might delay price cuts. Some strategists now see the 10-year yield probably returning to five% if inflation pressures persist.

The upcoming Client Worth Index (CPI) report on Wednesday and Producer Worth Index (PPI) information on Thursday can be key catalysts for markets. Any upside shock in inflation readings might reinforce the Fed’s stance of conserving charges regular for longer.

Market Outlook: Powell’s Testimony and Inflation Knowledge in Focus

With Powell’s testimony set to dominate market sentiment, merchants can be in search of any indicators on whether or not the Fed is contemplating adjusting its coverage in response to tariffs and inflation dangers. Moreover, upcoming inflation information can be carefully watched for indicators of persistent worth pressures. Whereas earnings season continues to drive particular person inventory strikes, the broader market path will hinge on the Fed’s coverage outlook and financial information within the days forward.

Extra Data in our Financial Calendar.